Leading the Malcolm Baldrige Way for Exceptional Results

Align Your Organization to Create Exceptional Results

 

How do leaders align and engage a workforce in the midst of uncertainty?

 

Authors Kay Kendall and Glenn Bodinson are expert Baldrige coaches. They studied more than two dozen organizations that delivered exceptional results following the Baldrige Criteria, key principles derived and championed by Malcolm Baldrige in the mid-1980s to improve productivity and competitiveness. Their research was supplemented by talking with more than fifty CEOs to gain insights on performance excellence. I recently asked them about their work and their new book, Leading the Malcolm Baldrige Way.

 

Disengaged workers have 37% higher absenteeism.

 

What do readers, who may not know Malcolm Baldrige, need to know before picking up your book? How will studying the Malcolm Baldrige Way help business leaders?

Malcolm Baldrige was a very successful businessman before Ronald Reagan tapped him to be Secretary of Commerce.  He was deeply concerned about the future of manufacturing in America.  At that time, the 80s, Japan was dominating in the automotive and electronics manufacturing industries.  Both of those industries – and others in America – were being plagued by poor quality, and consumers were making choices to go with Japanese products.  Secretary Baldrige championed an effort to establish a presidential award based on rigorous standards that would recognize manufacturing and service organizations that achieved high levels of performance.  After Baldrige’s untimely death, President Reagan decided to honor his friend with what became known as the Malcolm Baldrige National Quality Award.  Studying Leading the Malcolm Baldrige Way will help business leaders in any industry, in any situation – flourishing or in peril – learn how to align their employees to deliver exceptional results.

 

Why Engagement Matters

To those who think culture is soft, what statistics can you share that demonstrate engagement matters?

Leading the Malcolm Baldrige WayOne study showed that companies with high levels of employee engagement have five times higher shareholder returns over five years.  There is also clear evidence that engaged employees create loyal customers.  If that isn’t compelling, consider the flip-side of engagement.  Statistics from a recent article in Harvard Business Review cited, “Disengaged workers had 37% higher absenteeism, 49% more accidents, and 60% more errors and defects.  In organizations with low employee engagement scores, they experienced 18% lower productivity, 16% lower profitability, 37% lower job growth, and 65% lower share price over time.” Those are staggering costs for organizations.

 

 

Engagement is the rage these days in leadership circles, yet still many leaders don’t work on engagement. Why is this?

Honestly, we don’t understand it.  The evidence that engagement matters and impacts bottom-line results is clear.   There is also the notion that treating employees as valued assets is what leaders as decent human beings ought to do.  In the latest recession, we saw a lot of leaders with an attitude of “My employees should be grateful just to have a job.”  As the economy picked up, we saw many employees jump ship as soon as there were opportunities to work for an organization with a better culture, where they were treated as valuable contributors to the mission and vision.

 

Research: Companies with engaged workers report 6% higher profits.

 

Don’t Make Excuses

12 Principles that Guide High-Performance Organizations

Powerhouse

Unlocking the Secrets of High-Performance

They may seem, at first glance, to have nothing in common—different industries, challenges, experiences, leaders, competition, you name it. But there is something about this group of organizations that drew attention and merited study.

And that was their performance. These businesses outperformed their competition. Consistently.

Brian MacNeice and James Bowen recently spoke with me about their research into these companies and their new book, Powerhouse: Insider accounts into the world’s top high-performance organizations. Brian and James are founders of the international Kotinos Partners consultancy. They are experts in high performance.

They outlined 12 principles that guide the organizations that outlast and outperform the competition.

 


“Engagement on its own is only a stepping stone to sustained high-performance.”

 

12 Characteristics

How did you arrive at the common characteristics of organizations achieving excellence?

Effectively these emerged gradually through the research. We studied each institution with an open mind and on its merits. Then we shortlisted, at the conclusion of our research in each case, what we thought were the fundamental drivers of that institution’s enduring outperformance. When we compared the lists we had created across several of the institutions, the common characteristics became evident.

Secondly, because our research process was quite extended, we had the opportunity to use some of the later studies to test and validate hypotheses emerging from the earlier ones.

Finally we used some of our client work, which was progressing in parallel, to further refine our thinking.

 

I often ask leadership experts whether leaders are made or born. You take on that question with regard to high-performance organizations and say that they are made, not born. What leads you to this conclusion?

Simply put, the leaders who we spoke to in the organizations we researched were consistent in articulating and reinforcing that view. Without exception they talked about how they viewed the enduring sources of their advantage as being their people and their organizations, and they each described their roles as being about setting direction and ambition and then facilitating and enabling their organizations to achieve and extend those ambitions over time.

Even more particularly, given that many of the organizations we researched could be reasonably described as “values-driven,” their leaders saw a fundamental aspect of their roles as being about defining, representing, facilitating and rewarding those values in their organizations. The Mayo Clinic, Tata, Doctors Without Borders (Médicins sans Frontières) and the US Marine Corps were particularly strong examples in this regard.

 


“Overengineered engagement initiatives can become impersonal and feel false.”

 

4 Pillars of High-Performance

Let’s talk about the four-pillars to delivering high-performance.

Copyright Brian MacNeice and James Bowen, Used by permission Copyright Brian MacNeice and James Bowen, Used by permission

Every organization knows it needs a plan. Where do most go wrong?

There are lots of ways in which organizations go wrong when it comes to planning, but for this discussion we will highlight two that we observe again and again in our work.

First, we suggest that organizations go wrong by planning on a basis of “inside-out” rather than “outside-in.” That is to say, their leaders tend to look at last year’s model and last year’s performance and identify tweaks they can make with a view to delivering incremental performance improvements next year. This model of planning tends to be short-term and tactical in nature and anchored in a historic, likely outdated, view of the world.

 


High performance organizations plan from the outside-in, not inside-out.

 

High performance organizations come at planning from the outside-in, using a much more strategic, future-oriented approach. They start by looking outside their organizations to understand how the context within which they operate is changing. Sometimes they do this by looking at their organizations through a series of discrete “lenses” – for example industry, market, customer, competitor, technology, regulatory, people – to understand (a) what dynamics they observe, (b) what opportunities and/or challenges arise as a result of these dynamics, and (c) how these dynamics might play out over the course of their planning horizon. Armed with these insights – in particular a much deeper understanding of cause-and-effect – they are better positioned to create strategies that bridge from where they are now to where they want to be over time. Relative to the first approach we discussed, plans developed this way tend to be more ambitious, radical and lower risk all at the same time.

Second we would suggest that organizations go wrong because they view planning as a task rather than as a capability. They view it as a chore to be endured once a year to fill a template, and which brings with it a significant cost in terms of time away from the frontline. Their engagement and investment in planning reflects this attitude – for them it’s about getting to the end of the process as quickly and painlessly as possible.

The approaches we observe in high performance organizations, by contrast, are more consistent with Eisenhower’s famous mantra that, “Plans are nothing, planning is everything.” They understand that their organizations, and the worlds in which they are operating, are always changing, and as such they develop planning as a dynamic, enduring competence. They operate “with their heads up,” tracking changes in their context all the time, taking on board the lessons of their experience and factoring insights into their plans on an ongoing basis. Some of these organizations have moved away from a traditional, annual model of budget-based planning towards a more continuous, iterative model of strategy development and deployment.

 


“Plans are nothing, planning is everything.” -Dwight Einsenhower

Why Leaders Must Prioritize Health and Wellness

Business Health Fitness

Prioritize Your Health

Leaders are especially vulnerable to stress. Often leaders put others first and sacrifice their own wellbeing in the process. That’s not a recipe for long-term success and often results in failure.

Danielle Harlan, PhD is the Founder & CEO of the Center for Advancing Leadership and Human Potential. She completed her doctorate at Stanford University and has taught courses at both Stanford Graduate School of Business and U.C. Berkeley Extension’s Corporate and Professional Development program.

After reading her book, The New Alpha: Join the Rising Movement of Influencers and Changemakers Who Are Redefining Leadership, I asked her about her research and experience in leadership health and fitness.

 

“A goal without a plan is just a wish.” –Antoine De Saint Exupery

 

Your Health and Your Leadership

When did you realize that prioritizing health was linked to leadership?

Leadership is fundamentally about being able to set a vision and persist over the long run as you lead yourself and others to take on big challenges and work toward the finish line, so it seems like making health a priority would be a no-brainer, right? I mean, it’s pretty obvious that taking care of ourselves affects our energy levels and stamina in the long run.

However, in my experience, this is the one aspect of personal excellence that leaders are most likely to struggle with—and this is true across industries, types of organizations, and roles. As the work piles up, self-care often takes a back seat to other more “pressing” priorities, which almost never leads to good outcomes in the long run.

 

“Nothing ever comes to one, that is worth having, except as a result of hard work.” -Booker T. Washington

 

More often than not, leaders who don’t prioritize their health either become unbearable to work with because they they’re dehydrated, or tired, or stressed, or “hangry”—or they start to get sick. I’ve worked with people who’ve developed diabetes, pre-diabetes, and even heart disease because they’ve put work ahead of their health. I’ve also known people who’ve gained or lost too much weight because of work and even someone who eventually had an aneurism. I’m not saying that there weren’t other factors that played a role in some of these cases, but all of these examples are of people who put work ahead of self-care, and I think they (and their teams and organizations) suffered for it.

After seeing this pattern of behavior and outcomes over and over again, it became clear to me that managing your health is a key component of being an effective human being and a successful leader.

Copyright Kate Haley Photography Copyright Kate Haley Photography

 

 

“Tomorrow belongs only to the people who prepare for it today.” –Malcolm X

 

The Dangers of Putting Work Ahead of Self

Why do you think so many people miss this important link (leadership / wellness) to their detriment?

I think putting work ahead of self-care actually comes from a good place—a desire to put forth our best effort and do as much good as possible, and people can be very effective in the short run by working this way (I’ve definitely had moments, for example, where I’ve sacrificed sleep in order to meet a big deadline).

The problem arises when we consistently put “achievement” ahead of our health and wellness, which simply isn’t sustainable in the long run—and I think The New Alpha gives people permission to re-prioritize their health and wellness, even if it means perhaps being slightly less effective on a few short-term tasks.

 

“Attitude is a little thing that makes a big difference.” –Winston Churchill

 

4 Steps to Improve Your Health Today

Answer the Call to Exceptional Leadership

answer call

Leading the Unleadable

Taking a management job is not the same as answering the call to exceptional leadership. That’s what Alan Willett’s new book is all about: how to create a culture where people are able to perform in an extraordinary way.

Often new managers think that those following them are unengaged, cynical, or otherwise difficult. And that can be true, but many of these symptoms are a result of the manager not knowing how to lead, how to challenge, how to create team-wide expectations.

Alan Willett offers practical ways for managers to take on these challenges. Alan is the president of Oxseeker, a leadership consultancy with clients ranging from Oracle to NASA. His new book is Leading the Unleadable. I recently asked him about his work on exceptional leadership.

 

“Exceptional leaders have a personal, passionate mission that goes beyond results.” –Alan Willett

 

Set the Right Expectations

There are so many aspects of your book to discuss, but I want to focus on expectations. How important is the leader’s expectations?

It is amazing how even people that seem “defiant” are working to meet the expectations of the leader. When leaders are setting the wrong expectation it will have negative impacts – and the leader can do this without even knowing it.

I have seen many leaders consistently tell their teams that they want the “most aggressive schedule possible.”  Of course the projects with the most aggressive schedule possible are invariably late. Along with being late, there are many negative aspects that can include quality problems and morale issues since team members feel they are failing. Many leaders who set these expectations later ask me, “Why are my teams always late?”

What the leader really wants in these situations is for the team to have the “smartest” plan possible and a commitment that the team can definitively meet or beat that plan. Setting those expectations correctly will get leaders who they really want.

 

“Exceptional leaders are fearless in setting expectations in clear language.” –Alan Willett

 

How a Leader Sets Goals

It seems that you can set the bar too low and not challenge the team or be “so positive” that you demotivate everyone. What’s the best way to set the goal appropriately?

Set clear motivating goals for the team, but also leave out some specifics, leave them a little vague. Then challenge the team to make it more specific and meaningful to them. In doing this the team members almost always grumble about the lack of precision. They then get to work to make the goals better. The team then creates the goals that are that high bar you refer to. Since the team set those specific goals, they are committed to achieving them.

 

“Action is the foundational key to all success.” –Pablo Picasso

 

I have worked this method with leaders over 300 times, and it never fails to inspire the team ownership and commitment. Leaders are often stunned at what the teams can really accomplish.

 

Expect Excellence Every Day

21 Inspirational Martin Luther King, Jr. Quotes

Martin Luther King, Jr.

A Leader’s Vision

His voice is unmistakable. When I hear it, I am pulled in to the oratory, to the cadence, and mostly to the powerful message of Dr. Martin Luther King, Jr.

His inspiring, peaceful leadership in the face of hatred, racism, and bigotry makes him one of the most influential leaders in world history.

Today we celebrate his life and his achievements.

Here are some of his most famous, inspirational quotes.

 

MLK, Jr. Quotes

 

“Freedom is never voluntarily given by the oppressor; it must be demanded by the oppressed.” –MLK, Jr.

 

“What matters is not how long you live…but how you live.” –MLK, Jr.

 

“Love is the only force capable of transforming an enemy into a friend.” –MLK, Jr.

 

“Our lives begin to end the day we become silent about things that matter.” –MLK, Jr.

 

“Injustice anywhere is a threat to justice everywhere.” –MLK, Jr.

 

“We must learn to live together as brothers or we will perish together as fools.” –MLK, Jr.

 

“The time is always right to do what is right.” –MLK, Jr.

 

“You don’t have to see the whole staircase, just take the first step.” –MLK, Jr.

 

“I have decided to stick with love. Hate is too great a burden to bear.” –MLK, Jr.

 

“Life’s most persistent and urgent question is, ‘What are you doing for others?’” –MLK, Jr.

 

“Intelligence plus character: that is the goal of a true education.” –MLK, Jr.

 

“Change does not roll in on the wheels of inevitability but comes through continuous struggle.” –MLK, Jr.

 

“Darkness cannot drive out darkness. Only light can do that. Hate cannot drive out hate. Only love can do that.” –MLK, Jr.

 

“Courage is the power of the mind to overcome fear.” –MLK, Jr.